Registered in the Member States of the EU (European Union), companies which trade in goods with each other must have an individual tax identification number issued by the tax authorities. Also, they must follow specific rules relating to intra-community VAT. But do you still need to know the different regimes linked to intra-community VAT and how to obtain this famous number?
A company established in France and which sells services and/or products to a company located in another Member State of the European Union (intra-Community acquisition) is liable for French VAT provided that the place of delivery is located in the ‘Hexagon. In addition, value added tax (VAT) is due on the 15th of the month following the date of delivery. However, intra-community VAT is deductible if the invoicing rules have been respected (price excl. VAT, VAT identification numbers of the buyer and seller, etc.)
A company established in France and making an intra-Community delivery in another EU Member State does not pay VAT provided that:
In general, any commercial enterprise listed in the European Union and subject to value added tax (VAT) must have an individual identification number. The latter consists of the FR code, a two-digit computer key and the company’s SIREN number. As for its acquisition, the entity concerned must contact the SIE (Service des Impôts des Entreprises). Thus, having an intra-community VAT number is mandatory at first if the company is subject to this value added tax. The latter must also appear on your invoices, otherwise the tax authorities could sanction you by a fine. This can amount to 15 € by omission or error! To avoid this, although an invoice formalizes a commercial approach between professionals. It demonstrates a strong legal value, because it serves as accounting evidence and support for the application of VAT rights and must include a certain number of mandatory information defined by the General Tax Code.
However, for companies registered in overseas areas, the intra-community VAT number is not primary. Follow this link for more information on the taxation of professionals: service-public.fr